COLOMBIA

Social risk remains, but a dynamic recovery is on track

BB2

MEDIUM RISK

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP USD 323.8bn (World ranking 39, World Bank 2019)
Population 50.3mn (World ranking 29, World Bank 2019)
Form of state Presidential republic
Head of state Iván Duque Márquez (President)
Next elections March 2022 Congress, June 2022 Presidential
  • Natural resource base: agricultural, energy and minerals
  • Strong medium-term growth
  • Pro-business environment
  • Fiscal sustainability principle included in the Constitution
  • Support from international financial institutions
  • Independent monetary authorities
  • Sensitive to commodity price fluctuations and the U.S. business cycle
  • Difficult security situation with long running domestic insurgency and drug trafficking
  • Rule of law and control of corruption remain areas of concern
  • High informality in the job market
  • Skewed income distribution

Trade structure by destination/origin

(% of total)

Exports Rank Imports
United States 34%
1
27% United States
China 6%
2
20% China
Venezuela 4%
3
8% Mexico
Ecuador 3%
4
5% Brazil
Spain 3%
5
4% Germany

Trade structure by product

(% of total)

Exports Rank Imports
Crude Oil 32%
1
8% Refined Petroleum Products
Coals 13%
2
6% Cars And Cycles
Other Edible Agricultural Prod 10%
3
5% Telecommunications Equipment
Non-Monetary Gold 7%
4
4% Plastic Articles
Refined Petroleum Products 5%
5
4% Pharmaceuticals
The payment behavior of domestic companies has been deteriorating, with DSO remaining high and late payments occurring frequently.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • Payments

  • Court proceedings

  • Insolvency proceedings

 

Procedural costs and delays are significant, so court proceedings should be avoided overall. On the other hand, the court system has too many requirements in order to accept security titles.

When it comes to insolvent debtors, collecting debt is a genuine challenge and, overall, negotiating payment during the pre-legal action phase remains the most efficient alternative.

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